Published : 1 month ago, on 06/11/2024

By Chiara Holzhaeuser

(Reuters) – Hensoldt reported on Wednesday a 24.1% rise in adjusted core profit for the first nine months of 2024 driven by sales growth in its core business and the first-time inclusion of defence software company ESG, which it acquired in December.

After just 200 days, we have largely completed the post-merger integration of ESG,” CEO Oliver Dörre said in a statement, adding Hensoldt planned to complete the operational integration of ESG towards the end of the year.

The German defence electronics specialist posted adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of 187 million euros ($204 million), citing sales of its TRML-4D radar system as one of the key drivers.

The company reported an order intake of 1.86 billion euros for the first nine months of 2024, up 44.9% on the same period last year. That was mainly due to the sensors segment including orders from Germany’s armed forces and additional TRML-4D radars for the European Sky Shield Initiative for Latvia and Slovenia and in support of Ukraine.

Dörre told Reuters he expects half of Hensoldt’s business to continue to come from Germany, while Europe will contribute 30%, adding that the company was also considering acquisitions to strengthen its position.

“Technology and internationalisation, these are the drivers for potential acquisitions,” he said in an interview.

Hensoldt confirmed its full-year guidance and said it continued to benefit from strong demand in Germany, Europe and NATO countries.

“The growth momentum that we have seen in the first nine months will also be seen in the final quarter,” Hensoldt CFO Christian Ladurner told Reuters.

Based on the results, Hensoldt narrowed its 2024 book-to-bill ratio forecast to 1.2 times from a previous range of 1.1-1.2 times.

($1 = 0.9178 euros)

(Reporting by Chiara Holzhaeuser, additional reporting by Matthias Inverardi: Editing by Mark Potter and Alexander Smith)